The following are the leading stories in the Maltese and international press:

The local press focuses on the debate at the University yesterday which grouped all four party leaders.

The Times says students sided with Gonzi in a rowdy debate at the university. In-Nazzjon says University students at the political debate said “no” to Alfred Sant while l-orizzont says there was ‘organised hostility’ against Dr Sant.

In other stories, The Times reports HSBC Malta’s record profit of €117 million and the new IT course for women hosted by Microsoft Malta.

In-Nazzjon says reports that Malta placed 11th in a world index on the quality of life, compiled by International Living.

l-orizzont reports a new MLP promise to give tax rebates to SMEs equivalent to half their power surcharge.

The Malta Independent says Dr Sant warned there would be no more exploitation of part-time workers.

The Press in Britain…

The Daily Mirror says “obsessed” Mohamed al Fayed savaged the Royal Family at Princess Diana’s inquest by alleging Prince Charles wanted her dead so he could marry his “crocodile” Camilla.

The Sun leads on how the Harrods boss dubbed the Royals the “Dracula Family”, went on to call Prince Philip a Nazi and then claims that Tony Blair and Charles were in on Di’s murder.

The Daily Mail adds that Fayed insisted anyone who claimed Diana was not pregnant by his son Dodi has been lying. It adds that while he branded Prince Philip a racist Nazi called Frankestein, Camilla is a crocodile and the Royal Family is a Dracula family, he still he insisted he was not mad.

The Guardian’s main story, tells how Chancellor Alistair Darling is bracing for heavy job losses at Northern Rock as the government came under pressure over the nationalisation of the Newcastle-based lender.

The Times says taxpayers face a £100m bill from City lawyers and bankers for the failed auction of Northern Rock.The Daily Telegraph says the cost of Northern Rock's crisis has reached the equivalent of £3,500 for every taxpayer, as experts warned that the nationalisation rescue of the bank was bound to fail.

And elsewhere…

Kosovo, a day after the province's ethnic Albanian leaders declared their breakaway from Serbia, and the Pakistan general elections dominate the world scene.

International Herald Tribune says four major European countries – France, Germany, Italy and the UK – and the United States have said they will recognise an independent Kosovo. Not all EU members, however, were in favour of Kosovo's independence: Spain, Greeece, Cyprus, Romania and Slovakia rejected Kosovo's declaration as illegal, a stance shared by Serbia which is preparing to ask the UN Security Council to condemn Kosovo's independence as illegal. It is counting on its traditional ally Russia to veto Kosovo joining the UN as a new nation.

Pakistani Times says vote counting is underway following yesterday’s parliamentary elections. Turnout was not as large as expected, for fear of violance, but enough for early indications to show that the opposition parties may oust that of President Musharraf. Final results will are expected within the next two days. Promised to work with the new civilian government, the president told journalists he was committed to the politics of reconciliation.

Brussel’s De Morgen says the EU has urged Chad's warring factions to enter into peaceful negotations and respect human rights in the African country. It also called on Chad's President Idriss Deby for the immediate release of three members of the country's opposition and reiterated its determination to send a 3,700-strong EUFOR peace force to Chad in March.

Belorusskaïa Delovaya Gazeta says Belarus police briefly detained opposition leader Aleksander Milinkevich. for co-organizing an anti government demonstration last month. More than 3,000 retail traders and stall operators marched in Minsk on January 10 to protest a hike in taxes. Milinkevich has been arrested several times in the past for his opposition to authoritarian President Alexsander Lukashenko.

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